Free Cash Flows

Rhodes Corporation$$s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December $31$

$($Millions of Dollars$)$

$20202019$

Sales $ $11,000$ $ $10,000$

Operating costs excluding depreciation $9,5908,738$

Depreciation and amortization $350330$

Earnings before interest and taxes $ $1,060$ $ $932$

Less interest $280200$

Pre$-$tax income $ $780$ $ $732$

Taxes $(25\%)195183$

Net income available to common stockholders $ $585$ $ $549$

Common dividends $ $205$ $ $200$

Rhodes Corporation: Balance Sheets as of December $31($Millions of Dollars$)$

$20202019$

Assets

Cash $ $550$ $ $500$

Short$-$term investments $230200$

Accounts receivable $2,7502,500$

Inventories $1,5501,400$

Total current assets $ $5,080$ $ $4,600$

Net plant and equipment $3,6503,500$

Total assets $ $8,730$ $ $8,100$

Liabilities and Equity

Accounts payable $ $1,100$ $ $1,000$

Accruals $550500$

Notes payable $192100$

Total current liabilities $ $1,842$ $ $1,600$

Long$-$term debt $1,1001,000$

Total liabilities $ $2,9422,600$

Common stock $4,7084,800$

Retained earnings $1,080700$

Total common equity $ $5,788$ $ $5,500$

Total liabilities and equity $ $8,730$ $ $8,100$

Suppose the federal$-$plus$-$state tax corporate tax is $25\%.$ Answer the following questions.

What is the net operating profit after taxes $($NOPAT$)$ for $2020?$ Enter your answer in millions. For example, an answer of $$1$ million should be entered as $1,$ not $1,000,000.$ Round your answer to the nearest whole number.

$

million

What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $$1$ million should be entered as $1,$ not $1,000,000.$ Round your answers to the nearest whole number.

$2020$: $

million

$2019$: $

million

What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $$1$ million should be entered as $1,$ not $1,000,000.$ Round your answers to the nearest whole number.

$2020$: $

million

$2019$: $

million

What is the free cash flow for $2020?$ Enter your answer in millions. For example, an answer of $$1$ million should be entered as $1,$ not $1,000,000.$ Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

$

million

What is the ROIC for $2020?$ Round your answer to two decimal places.

$\%$

How much of the FCF did Rhodes use for each of the following purposes: after$-$tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short$-$term investments? $($Hint: Remember that a net use can be negative.$)$ Enter your answers in millions. For example, an answer of $$1$ million should be entered as $1,$ not $1,000,000.$ Round your answers to the nearest whole number.

After$-$tax interest payment $

million

Reduction $($increase$)$ in debt $

million

Payment of dividends $

million

Repurchase $($Issue$)$ stock $

million

Purchase $($Sale$)$ of short$-$term investments $

million